China Precision Steel Announces Second Quarter Fiscal 2009 Results
6:00a ET February 10, 2009 (PR NewsWire)
China Precision Steel (Nasdaq: CPSL), a niche precision steel processing company principally engaged in producing and selling high precision, cold-rolled steel products, announced today its fiscal 2009 second quarter results for the period ended December 31, 2008.
Second Quarter Highlights -- Revenue increased 32.9% period-over-period to $17.6 million -- Gross profit was $3.5 million, down 26.6% versus second quarter 2008 -- Net loss of $2.0 million resulting from a $3.8 million allowance for bad debt -- Fully diluted loss per share of $0.04 -- Exports generated 75.3% of total sales
"Export demand remained healthy during the quarter resulting in stable sales of our low carbon steel products while the domestic demand for our high carbon steel products declined as our customers moved to reduce their inventory," commented Dr. Wo Hing Li, China Precision Steel's Chairman and CEO. "Although our domestic sales were adversely impacted by the global economic downturn, we believe our business will benefit from the Chinese government's economic stimulus plans including a rejuvenation plan for the steel industry and a Chinese auto industry bailout. Furthermore, precision steel products tend to be a leading economic indicator and as such, our industry is the first to experience the impact of a purchasing slowdown and will be the first to benefit from the economic recovery."
